ECO 372 Week 2 - Fundamentals of Economics Paper

Individual

Fundamentals of Macroeconomics Paper

Resource: Figure 3-1 in Ch. 3 of Macroeconomics.

Part 1

Describe the following terms in your word.

·         Gross domestic product (GDP)

·         Real GDP

·         Nominal GDP

·         Unemployment rate

·         Inflation rate

·         Interest rate

Part 2

Consider the following examples of economic activities:

·         Purchasing of groceries

·         Massive layoff of employees

·         Decrease in taxes

Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.

Write a 700- to 1,500-word paper summarizing the results.